The European Bank for Reconstruction and Development (EBRD), has applied to join the Global Financial Innovation Network (GFIN) as an observer. GFIN is a global Fintech Sandbox project orchestrated by the UK. GFIN claims a good number of global regulators – each looking to facilitate innovation in financial services in a cross border manner.
Additionally, the EBRD has revealed a new partnership with Estonia – an EU country that has firmly established its digital credibility and innovation-friendly ecosystem.
The EBRD is working with Estonia’s Ministry of Finance and the country’s Financial Services Authority to launch a “technical assistance Fintech project.” The idea is to create a sustainable environment where innovation can thrive. In a recent report by the EBRD, the bank said that while a supportive regulatory environment is key, finding a balance between innovation and regulation is “fiendishly difficult.”
The same report indicates the EBRD will be working with Estonia to build a regulatory sandbox to facilitate Fintech innovation.
As it is explained:
“The regulator plays a crucial role in this. In Estonia’s case, the EBRD-led project will allow the authorities to learn more about innovative businesses, while companies will be able to test new ideas with real customers utilising the dexterity and innovation that start-ups are renowned for in a controlled regulatory environment.”
The EBRD, the European Commission along with Estonian authorities will be developing a way to benchmark the success of the program in the coming months.